You have just opened a new Italian restaurant in your hometown where there are three other Italian restaurants. Your restaurant is doing a brisk business and you attribute your success to your distinctive northern Italian cuisine using locally grown organic produce. What is likely to happen to your business in the long run

A subfield of economics called managerial economics deals with the use of economic principles in managerial decision-making.
Economics is the study of how products and services are produced, distributed, and consumed.
In managerial economics, choices on how to distribute finite resources are made using economic theories and principles.
Economic frameworks are used by managers to maximize earnings, resource allocation, and overall firm production while enhancing productivity and reducing wasteful activities.
These frameworks analyze real-world issues at the micro and macroeconomic levels in order to help firms make intelligent, forward-thinking decisions.
Managerial economic techniques help to guide managers in these decisions. Managerial decisions entail forecasting (making decisions about the future), which involves levels of risk and uncertainty.

When trade or business is brisk, a lot of money is being made and goods are being sold extremely quickly. Souvenir vendors were doing good business. Since, the restaurant is doing a brisk business, this success will invite others to open competing restaurants and ultimately your profits will be driven to zero.

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